Cryptocurrency miners are being shut down

After the crash of Bitcoin in the crypto market, bitcoin future is going down. Bitcoin Miners
have seen a massive drop in their towels because of which bitcoin mines are shutting down.
The Hash rate of Bitcoin witnessed a decline of 24% which is massive at the end of August
till November. Hash rate is a method of gaging the computing power dedicated to mining.
With an uncertain bitcoin future, the question has now changed from, ‘how to make money
from bitcoin?’ to ‘How do I save my money from going down in bitcoin?’
Blockchain.com stated that this drop might be a result of several miners shifting their focus
on other cryptocurrencies, Organisations like JPMorgan Chase &amp; Co have come out to say
that many investors may have lost a lot of money after the price of Bitcoin wobbled.
“This suggests that prices have declined to a point where mining is becoming uneconomical
for some,” says Nikolaos panigirtzoglou (JPMorgan Strategist)
As we know, Miners who perform the computational necessities to complete a bitcoin
transaction are rewarded with bitcoins. Miners are now suffering as the cost of bitcoin has
stumbled and it is difficult for the miners to achieve their break-even cost. This uncertainty
in the crypto market may lead these miners to shut down forcefully to avoid mining
operations at a loss.
On November 16, the break-even cost of mining a bitcoin using Bitmain’s antminer S9 was
estimated to be $7000. According to Fundstrat Global Advisors.
With a drop of 80% on the most significant digital token since December, the value of the
token has dropped to $3,742. (New York Times) It is also seen that the value of Bloomberg
Galaxy Crypto has stumbled to a 14 – month low.
Bitcoin mining’s from Giga Watt declared bankruptcy as it owes $7milion to creditors on
21st of November according to the leading headlines. However, the fall in bitcoins price is
not limited to the US. China which has been an excellent market for bitcoin has seen a
downfall for minors as well. For mining bitcoin, miners require certain profits. However, that
phase of benefit has passed.
The average cost of mining a bitcoin ranges anywhere between $6000 to $7000 but lately,
the value of is $4500. Miners are operating at a loss, and it is not sustainable for the miners
to carry on with for long. Considering small-scale and local miners, shutting down their rigs
is the only smart option for them in the current scenario.

Moeen Khan is a Content Writer and Social Media Writer who actively writes about Blockchain Technology and Cryptocurrencies at Coinpublish.
Moeen has previously worked with two start-up companies in New Delhi that were in the financial sector. He has interned with organizations like NDTV Goodtimes and Magicbricks (TOI Group). This experience has given him a broad knowledge base upon which he is working to build further through learning and practice.

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